News Release
Nov. 14, 2001

DUKE ENERGY FILES APPLICATION TO DEVELOP MISSISSIPPI SALT DOME FOR NATURAL GAS STORAGE

HOUSTON – Duke Energy Gas Transmission (DEGT) today announced that one of its Market Hub Partners (MHP) subsidiaries has filed an application with the Federal Energy Regulatory Commission (FERC) seeking approval to develop a natural gas storage facility in an underground salt dome in Copiah County, Miss.

Development plans filed today by Copiah County Storage Co. call for an initial natural gas storage capacity of 3.3 billion cubic feet (Bcf), about 300 million cubic feet per day (MMcf/d) of withdrawal capability and approximately 150 MMcf/d of injection capability. Storage capacity at the facility can ultimately be expanded by an additional 6 Bcf to 9.9 Bcf.

Copiah County Storage Co. asks FERC for a preliminary determination on its application by Feb. 20, 2002, and a final order by July 24, 2002, in order to meet the Feb. 1, 2004, in-service date. This schedule will allow Copiah to begin meeting anticipated customer demand that heating season.

"Natural gas continues to be the fuel of choice for power generation," said Gregory Rizzo, vice president of marketing for DEGT and president of MHP. "The deliverability characteristics of salt cavern storage, which permits the rapid withdrawal of gas, will allow storage customers to meet their peak needs more efficiently than traditional reservoir storage facilities."

Once approved by FERC, Copiah Storage Co. plans to use fresh water to leach a cavern in the naturally occurring salt formation to accommodate the storage of natural gas. Also planned is the installation of aboveground compression and leaching facilities related to cavern development. The facility will interconnect with a nearby DEGT Texas Eastern Transmission, LP natural gas pipeline. Based on customer demand, future interconnects also are planned to other nearby natural gas pipelines.

DEGT, the Houston-based Duke Energy business unit responsible for the company’s interstate natural gas pipeline operations, owns and operates 12,000 miles of interstate natural gas pipelines known as Texas Eastern Transmission, LP; Algonquin Gas Transmission Co.; East Tennessee Natural Gas Co.; and with others, owns Maritimes & Northeast Pipeline and the Gulfstream Natural Gas System. Together, these companies transport 8 percent of the natural gas consumed in the United States.

Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses -- generating revenues of more than $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

Contact: Gretchen Krueger
Phone: 713/627-4072
24 Hour Phone: 704/382-8333
Email: gdkrueger@duke-energy.com